Real Estate Investing in Tacoma, Washington (98406)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 98406 (Tacoma, WA)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
What’s happening in Tacoma, WA (98406)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 98406 Tacoma
ZIP 98406 in Tacoma, WA carries a solid set of headwinds. Home values near $623K and rents of $2,217/mo sit inside a market where underwriting has to be tight.
The 98406 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Statewide comparisons place 98406 among WA's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
The demographic picture in 98406 includes headwinds that any investor should price in. Income distribution skews lower than Tacoma averages, and tenant stability requires active management.
Experienced landlords with local relationships tend to find 98406 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Tacoma:
Property Strategy for 98406
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $367,632 | $1,590 | 3.1% | +3.9% | $367,632 |
| 2BR | $464,965 | $1,950 | 3.0% | +5.4% | $232,483 |
| 3BR | $599,444 | $2,700 | 3.2% | +5.6% | $199,815 |
| 4BR | $691,380 | $3,070 | 3.2% | +5.8% | $172,845 |
| 5BR | $778,332 | — | — | +5.8% | $155,666 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 98406 Compare?
| Metric | 98406 | Tacoma | Seattle-Tacoma-Bellevue, WA | Washington |
|---|---|---|---|---|
| Home Value | $623,248 | $233,270 | N/A | $591,536 |
| 5-Year CAGR | 2.8% | 2.0% | N/A | 5.9% |
| Avg Rent | $2,217 | $1,844 | N/A | - |
| Cap Rate | 2.8% | 2.8% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 98406 (Tacoma, WA). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 98406 (Tacoma, WA)?
~25 seconds · no account needed · your report is anonymous
Property managers serving Pierce County
Manage rentals here? List your business →Harborside Property Management LLC offers commercial and residential property manager services in Tacoma & Gig Harbor, including single-family and multi-family homes. summary from their website
Haven Property Management is a full-service residential management company based in Federal Way, WA, covering the Greater Puget Sound area. summary from their website
HOA Community Solutions provides management services for homeowner associations. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $623,248 |
| Monthly Rent | $2,217 |
| Price-to-Rent | 23.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.3% |
| Cap Rate | 2.8% |
| 5-Year IRR | 5.6% |
📈 Home Appreciation
| 1-Year | +4.3% ▲ |
| 3-Year CAGR | +2.7% ▲ |
| 5-Year CAGR | +2.8% ▲ |
| 10-Year CAGR | +7.6% ▲ |
🏠 Rent Trends
| 1-Year | +2.6% ▲ |
| 3-Year CAGR | +3.7% ▲ |
| 5-Year CAGR | +3.7% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.8%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 98406
Population: 23,642
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 98406
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Point Defiance Elementary School
Bryant Montessori Middle School
Delong Elementary School
Edna Travis Elementary School
Foss High School
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 5,600 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How much should I expect to pay for a home in Tacoma, WA?
Expect median prices around $623K in Tacoma, WA. The market has run at a 0.0% 5-year CAGR, so entry costs have been stable.
Is it easy to find good tenants in Tacoma, WA?
Tenant demand in Tacoma, WA is solid. The local workforce $2,217/mo rents across most rental classes.
What kind of vacancy should I budget for in Tacoma, WA?
Occupancy in Tacoma, WA runs measured with elevated vacancy. Well-priced units at $2,217/mo lease on reasonable timelines.
Is Tacoma, WA a good market for FHA house hackers?
Tacoma, WA is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $623K price point reasonable to enter.
What investment strategy works best in Tacoma, WA?
Most investors in Tacoma, WA run a careful cash-flow rentals with hands-on management strategy. It aligns with the 3.0/5 investability profile and the market fundamentals.
You know 98406 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 98406 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 98406 ranks in Seattle-Tacoma-Bellevue, WA
Every ZIP in this metro, ranked. Free.
AI Market Advisor
Ask questions about investing in 98406 (Tacoma)
Community Ratings
What people who’ve spent time here actually say. Not paid reviews.
Be the first to rate 98406 (Tacoma, WA).
It takes 30 seconds. No signup. Your rating helps everyone who comes here after you.